Key Takeaways:
– Established tech professionals struggle to find new roles amid continuous layoffs and hiring slowdown.
– Employers now prioritize specific skills with a premium on emerging technologies like AI, cloud computing, and cybersecurity.
– Tech companies are shifting focus from managerial roles to individual contributors.
– While layoffs continue, some technology, information, and media companies are still hiring.
The Struggle of Tech Professionals
Jenny Richards, an experienced product manager who has worked with renowned Seattle tech companies such as Microsoft and Accenture, faced an unexpected job search when she was laid off in September. Despite applying to hundreds of jobs, many with internal referrals, getting a new role eluded her. A scenario that continues to plague many long-serving tech professionals.
Heightening Hiring Standards and Selective Skills
Notably, Paul Malhi, senior director at TalentReach, has pointed out an observable trend in hiring practices in the tech industry. According to his comments, employers’ preferences have shifted towards rare specific skills and expertise, particularly in emerging technologies such as artificial intelligence, cloud computing, and cybersecurity.
Experienced professionals like Richards may find it challenging to meet these rapidly evolving skill requirements. Additionally, ageism is an obstacle some seasoned professionals encounter.
Role of Middle Managers Diminishing
Interestingly, companies push for efficiency has led to middle managers making up a large part of layoffs. This report was released by live data technologies and later shared by Bloomberg earlier this week. High remuneration and less direct contributions to coding tasks have made middlemanagers a common target for layoffs.
Pace of the Tech Job Market in 2024
The tech downturn, which started in 2022, led to massive layoffs that saw over 250,000 tech workers lose their jobs. Even while the pace of layoffs has slowed in 2024, organizations are still cutting jobs. More than 50,000 jobs have been sliced at over 200 organizations, per the reports by Layoffs.fyi.
This trend is even observable at tech giants like Amazon and Meta, with the companies’ headcount growth slowing down. On the contrary, these companies have seen their stock prices increase. Start-ups, on the other hand, are grappling for survival amidst a constrained venture capital market.
However, it’s not all gloom for the job market. In a recent report published by LinkedIn, hiring in the technology, information, and media industry increased by 11.6% in January, compared to July of the past year. Some laid-off workers are finding their way by starting their business.
The Impact on the Tech Job Market Participants
Even while her search ended successfully, Richards believes that the current market situation could be causing psychological harm to job seekers. The fear of losing their homes, feeding their families and internalizing their joblessness as their fault is a reality for many.
Richards urged those trying to help the unemployed to lend an ear and foster connection, as it could help alleviate the feelings of isolation the unemployed may be experiencing.
